World Bank recommends establishment of a 'National Council
of Ministers' in Pakistan
The World Bank has recommended the establishment of a
'National Council of Ministers' in Pakistan, comprising both federal and
provincial representatives, to address significant development and governance
challenges resulting from incomplete devolution and institutional weaknesses.
The purpose of this council is to address the shortcomings in federal and
provincial institutions, policies, and accountability systems by ensuring
simultaneous and coordinated strengthening.
The World Bank has expressed skepticism about the potential of technocratic government interventions to bring about significant changes in Pakistan's institutional environment in the short term. However, it acknowledges that the current context, characterized by deteriorating economic conditions, demographic shifts, and the influence of social media, may present opportunities for positive change.
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One of the key issues identified by the World Bank is the incomplete implementation of devolution initiated through the 18th Amendment, which has led to overlaps in service delivery, increased fiscal costs, and blurred lines of accountability. This has weakened accountability for revenue collection and complicated tax administration. The bank also noted that performance reviews are infrequent, promotions are often based on seniority and informal networks rather than qualifications, and incentives prioritize adherence to rules over operational performance.
To address these challenges, the World Bank has urged the government to take immediate measures to improve coordination among different levels of government and between federal and provincial authorities. Specifically, it recommends the following:
The Council of Common Interests
(CCI) and the National Economic Council (NEC) should play a critical role in
supporting national policy coordination and coherence, given that decisions
made by the Economic Coordination Committee or the federal cabinet are no
longer binding on the provinces.
A National Council of
Ministers, composed of federal and provincial ministers operating under the
auspices of the CCI, should formulate and monitor the implementation of key
national policies in areas such as education, health, food security,
agriculture, water and sanitation, and transport.
The newly elected government
should work on building consensus around technical implementation arrangements
for a decentralized system, including expenditure cuts, tax and revenue
assignments, and the transfer of functions and tax instruments.
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An appropriate constitutional
body (likely the CCI) should develop an implementation plan based on a mutually
agreed vision, achieved through a consultative process with broad provisions.
Federal-provincial fiscal
coordination should be improved, including efforts to harmonize tax policy and
administration and ensure the effective implementation of a national
medium-term fiscal framework, in line with new federal and provincial fiscal
responsibility legislation.
Measures should be prioritized
to strengthen institutions, enhance accountability, and counteract elite
capture, all while building the administrative capacity of the government to
deliver crucial reforms and investments.
The World Bank also called for
improvements in processes for public sector appointments, performance
management, and tenure. It recommended introducing a Performance Management
System (PMS) for public servants, strengthening the security of tenure, and
safeguarding chief executive appointments from political interference in key
public sector agencies.
In-service training of
government officers should be strengthened, and recruitment should focus on
relevant skills and expertise rather than solely performance on public service
exams.
The bank emphasized the
importance of digitalization to increase efficiency and reduce corruption
opportunities, noting that Pakistan's existing infrastructure, including smart
mobile phones, electronic databases, computerized land records, and a robust IT
industry, provides a conducive environment for such initiatives.
Overall, the World Bank's recommendations aim to address governance and development challenges in Pakistan by enhancing coordination, accountability, and the capacity of government institutions.
Source: Dawn